Fidelity National Information Services (FIS) has reported an 150.91 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $138 million, or $0.41 a share in the quarter, compared with $55 million, or $0.17 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $286 million, or $0.86 a share compared with $259 million or $0.79 a share, a year ago. Revenue during the quarter grew 3.39 percent to $2,255 million from $2,181 million in the previous year period. Gross margin for the quarter expanded 105 basis points over the previous year period to 29.84 percent. Total expenses were 88.47 percent of quarterly revenues, down from 91.56 percent for the same period last year. This has led to an improvement of 309 basis points in operating margin to 11.53 percent.
Operating income for the quarter was $260 million, compared with $184 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $682 million compared with $637 million in the prior year period. At the same time, adjusted EBITDA margin improved 104 basis points in the quarter to 30.24 percent from 29.21 percent in the last year period.
"We are very pleased with our strong results for the quarter, which exceeded our expectations and provided us a solid start to the year," said Gary Norcross, FIS president and chief executive officer. “We continue to see demand for our solutions and services, and are harnessing these opportunities to drive sustained value for our clients and shareholders."
For fiscal year 2017, Fidelity National Information Services forecasts revenue to grow in the range of 1 percent to 2 percent. The company expects diluted earnings per share to be in the range of $4.15 to $4.30 on adjusted basis.
Operating cash flow improves
Fidelity National Information Services has generated cash of $454 million from operating activities during the quarter, up 17.92 percent or $69 million, when compared with the last year period. Cash flow from investing activities was $671 million for the quarter as against cash outgo of $146 million in the last year period.
The company has spent $1,114 million cash to carry out financing activities during the quarter as against cash outgo of $239 million in the last year period.
Cash and cash equivalents stood at $705 million as on Mar. 31, 2017, up 0.43 percent or $3 million from $702 million on Mar. 31, 2016.
Working capital declines
Fidelity National Information Services has witnessed a decline in the working capital over the last year. It stood at $271 million as at Mar. 31, 2017, down 11.73 percent or $36 million from $307 million on Mar. 31, 2016. Current ratio was at 1.09 as on Mar. 31, 2017, down from 1.09 on Mar. 31, 2016.
Days sales outstanding went down to 71 days for the quarter compared with 80 days for the same period last year.
Debt comes down
Fidelity National Information Services has recorded a decline in total debt over the last one year. It stood at $9,505 million as on Mar. 31, 2017, down 15.86 percent or $1,792 million from $11,297 million on Mar. 31, 2016. Total debt was 37.89 percent of total assets as on Mar. 31, 2017, compared with 42.74 percent on Mar. 31, 2016. Debt to equity ratio was at 0.95 as on Mar. 31, 2017, down from 1.19 as on Mar. 31, 2016. Interest coverage ratio improved to 2.80 for the quarter from 1.98 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
